United States v. The Hannan Company and Hannan South Construction, Inc.

JAMES C. HILL, Circuit Judge:

The Hannan Company and Hannan South Construction, Inc. [hereinafter appellants] are general contractors who in late 1970 paid substantial sums of money into the payroll account of its electrical subcontractor, Medallion Electric Company. Appellants’ purpose in so doing was singular: they sought Medallion’s successful completion of a pending mall construction project near Miami, Florida. Undisputed in this case is appellants’ knowledge that Medallion would be unable to pay the required withholding taxes on wage disbursals from the “revitalized” payroll account.

Medal…